The Pension Regulator is to examine a decision by newspaper group Trinity
Mirror to slash payments designed to tackle its pension deficit.

The company announced a £69m reduction in "deficit funding payments" over three years as part of its plan to repay £168.4m of loan notes to US investors.

The publisher of the Daily Mirror revealed it will cut annual deficit reduction payments from £33m to £10m alongside a £110m refinancing.

The change comes despite the Trinity Mirror pension deficit increasing from £161m to £230m last year.

A spokesman for the Pension Regulator said: "We will scrutinise any reduction in contributions or other actions that increase risks to the scheme and are prepared to take strong action where necessary."

The company said the reduction in pension contributions alongside its refinancing will allow it to pay off US loan notes due this June, and in October 2013 and June 2014.

Pension consultant John Ralfe said: "The pension scheme is effectively being pushed behind these other creditors who are being repaid first. I would have expected Trinity Mirror to have squared this with the Pension Regulator before making this announcement."

A spokesman for Trinity Mirror said: "There have been over 150 lawyers and actuaries representing the various pension schemes working on this for over six months. The Pension Regulator has been notified this is taking place."

The announcement came as Trinity Mirror revealed a 40pc fall in profit before tax to £74.4m in 2011 on revenues 2pc lower at £746.6m.

The company put the fall down to "cyclical market pressures" and said it had put in place structural cost savings of £25m during the year. It also said it was freezing staff pay including that of chief executive Sly Bailey.

As part of its growth plans Trinity Mirror has invested £10m in its digital business including £5m in its new social media marketing business "happli".

The company said total investment in the new business channel would reach £10m over two years with net revenues expected to come in at £20m by 2014.

In what appears to be a similar business model to Groupon, happli will offer "simple, high value, local and national deals directly to customers".

Ms Bailey said: "Our investment in the technology led transformation of our publishing infrastructure is well advanced and on budget and will be completed by the end of 2013."